Cost-Volume-Profit Analysis Cannot Be Used If Which of the Following

question 97

Multiple Choice

Cost-volume-profit analysis cannot be used if which of the following occurs?

• A) Costs cannot be properly classified into fixed and variable costs.
• B) The total fixed costs change.
• C) The per-unit variable costs change.
• D) Per-unit sales prices change.

---

Definitions:

Primary Measurement

The initial quantification of financial transactions in terms of money, serving as the basis for further financial analysis and reporting.

Exit Price

The amount that would be received from selling an asset or transferred liability in an orderly transaction between market participants.

Entry Price

The price at which a security or asset was bought, affecting the calculation of gains and losses for accounting or tax purposes.

Principal Market

The market with the greatest volume and level of activity for the asset.